Last year may have been ripe for political betting, but some legislators are already pushing back on its place in the industry.
With another presidential election now in the rearview mirror, Massachusetts Democratic Sen. Jacob Oliveira is among those seeking to ban betting on future elections. Oliveira recently filed a measure — “An Act relative to wagering on political outcomes” — that would make it illegal to “knowingly place, accept or engage in any form of betting or wagering on political outcomes.”
Oliveira isn’t alone, either. In Indiana, Republican Rep. J.D. Prescott proposed House Bill 1532 that would bar operators from accepting bets on the outcome of an election. Should it pass, the measure would go into place on July 1.
At the moment, there is no specific rule prohibiting election betting in Massachusetts. However, any operator that tries offering odds on such a market must first gain approval from the Massachusetts Gaming Commission. Indiana also does not have specific prohibitions in place.
First-time offenders of HB 1532 would be subject to a $1,000 fine, followed by a $2,500 fine for the second offense. Third-time offenders would receive a $5,000 fine and have their betting license revoked.
Hundreds of millions of dollars were legally wagered on the 2024 election. But with political betting already prohibited in states such as Connecticut, many bettors turned to offshore sportsbooks to place their wagers. Polymarket, an online betting platform only available to customers outside of the U.S., collected over $3.6 billion in bets on the election, with $1.5 billion placed on Donald Trump and $1 billion on Kamala Harris.
Oregon Democratic Sen. Jeff Merkley, who last year introduced the Ban Gambling on Elections Act — legislation designed to prevent Wall Street from influencing political betting markets — said that betting can destroy the integrity of an election.
MarketWatch reported that Kalshi and ForecastEX, regulatory prediction markets, accepted more than $900 million in wagers during the U.S. House, Senate and presidential races.
In a statement announcing the Ban Gambling on Elections Act, the House companion to Merkley’s legislation in the Senate, Oregon Democratic Rep. Andrea Salinas said that election betting sets a “dangerous precedent, incentivizing bad actors to try and influence or interfere with our election systems.
“We cannot play roulette with our democracy by allowing this kind of wagering without a thorough accounting of the political consequences,” Salinas added.
Online sports betting is now legal in 38 U.S. states and the District of Columbia. As the industry continues to gain popularity, operators continue to look for new ways to keep users involved. Political betting is more of a niche market, with interest built largely around the election cycle. However, recent legislation shows there is legitimate concern about political races being swayed by betting markets.
Doug Bonjour
